Abstract

The case discusses the customer service at Amazon.com, Inc. (Amazon), a US-based e-tailer. Amazon evolved from being just an online bookstore into one of the largest e-commerce platforms in the world where customers could find and discover anything they wanted to buy online in a more convenient way. Customer service, loyalty, and customer retention were the three important aspects of Amazon’s service culture. Experts were of the opinion that over the years, the customer base of Amazon had increased significantly due to its high levels of customer service. In addition to consumer customers, Amazon offered marketing and promotional services for third-party retailers and web services for developers. It allowed third party vendors to sell their products on its website. The case outlines the customer-centric philosophies of Amazon and discusses the various customer programs undertaken by Amazon. The case discusses the importance of customer experience at Amazon and describes the focus of the company on three aspects – price, selection, and convenience. Jeff Bezos, CEO of Amazon, invested heavily in building advanced technological infrastructure to serve his customers. He spent huge sums of money on customer service programs, even though this affected the operating margins of the company. The case points out certain issues related to Amazon’s customer service. The case concludes by discussing how Amazon had weathered the recession and performed better than other online retailers and also discusses how Amazon’s acquisition of Zappos would affect the customer service of both the companies in the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of customer service, particularly in the online retail industry. Understand various concepts in customer service and customer relationship management. Study the customer-centric philosophies of Amazon, the systems and processes,

Keywords

Customer service, Customer experience, Customer loyalty, Customer satisfaction, Customer-centricity, Customer service culture, Customer feedback, Customer retention, Customer perception, Competitive advantage, Core competency, Online retail, e-commerce, Amazon